• Dr.Hetal Gaglani
• Dr.Smita Rao

Shell companies are not illegal intrinsically but large number of them gradually moves towards illegal activities as a vehicle for tax evasion or converting black money into white. In India Shell Companies are those that had not filed financial statements for three financial years, these companies are used by business companies to evade taxes, promoters use these companies for diverting funds from listed or unlisted companies and some of these shell companies exist only on papers and having only postal addresses with no real office or employees or backed up by actual assets or cash flow. This paper recapitulates the illicit activities that take place through shell companies, the effect of shell companies on stock market and investors. The paper also highlights the measures taken by the authoritative bodies and the suggestions to eliminate shell companies.

Financial Statements

"Shell Company - Hndrance in Nation's Growth", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 5, page no.80-87, May-2019, Available :http://www.jetir.org/papers/JETIR1905A12.pdf

"Shell Company - Hndrance in Nation's Growth", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 5, page no. pp80-87, May-2019, Available at : http://www.jetir.org/papers/JETIR1905A12.pdf